Gujarat becomes sixth state to ratify GST Bill

“What UPA government could not do in the 10 years, Modi government did it in less than 2.5 years,” said Deputy Chief Minister Nitin Patel.

Crediting Prime Minister Narendra Modi for winning the trust of all political parties, the Gujarat Assembly Tuesday passed the Goods and Service Tax (GST) Constitution Amendment Bill and became the sixth state to do so after Assam, Bihar, Jharkhand, Himachal Pradesh and Chhattisgarh.

“What UPA government could not do in the 10 years, Modi government did it in less than 2.5 years. He won the trust and confidence of all the states and political parties. As a result, the GST Bill was passed in both the Houses of the Parliament unanimously, even though BJP lacks a majority in the Rajya Sabha,” said Deputy Chief Minister Nitin Patel in the Assembly which passed the amendments in absence of the Opposition Congress party members who were suspended earlier on the last day of the two-day monsoon session.

“It is not just BJP ruled states, even a state like Bihar has ratified it,” Patel said while explaining in detail how the states stands to benefit from GST. “If the opposition MLAs were here, they would have asked me why Gujarat government did not cooperate with the UPA government on GST in the past. That is because the previous draft said that the states “may” be compensated. Modi government replaced the word ‘may’ with ‘shall’.”

“About 40 per cent of the state’s revenues come from petroleum products and for the time-being this category has been kept our to the purview of GST,” Patel said adding that Gujarat being a hub of petroleum products will benefit from this move.

Speaking on the bill, Saurabh Patel, former finance minister of Gujarat who has been representing the state in various discussions related to GST, said, “Ten years of discussion on GST has borne fruit. Most of the revenues that the state earned in form of VAT, luxury tax, CST, cess and surcharges, and entry tax will be subsumed. Only four taxes including electricity duty, tax on vehicles, and stamp duty will remain with the state.”

Patel pointed out that Rs 38,000 crore of revenues that the state earned in form of VAT and other taxes might get subsumed.


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